MediaTek has unveiled the Dimensity 9600 Pro, its first mobile chip built using Taiwan Semiconductor Manufacturing Co.’s 2-nanometer process, as the company takes a more direct position against Qualcomm in the premium smartphone market.

The processor is MediaTek’s first phone chip to use TSMC’s 2nm manufacturing technology. Nikkei Asia reports that the same generation of process technology is also used in Apple’s folding iPhone Duo. The Dimensity 9600 Pro includes Arm’s latest G2-Ultra NX graphics core and supports 4K slow-motion video recording at up to 240 frames per second.

The chip has two neural processing units for handling artificial-intelligence workloads. This allows generative AI features to run directly on a smartphone rather than relying on the cloud. MediaTek said the design reduces the time between receiving an AI query and beginning the response by 51% compared with the previous generation.

MediaTek targets Qualcomm’s premium market

MediaTek also introduced the Dimensity 9600M, a lower-tier version intended for a broader range of price points. The flagship Dimensity 9600 Pro uses TSMC’s 2nm process, while the 9600M is manufactured using the company’s older 3nm technology. Both chips are expected to reach the market before the end of the year. The split gives handset makers a flagship option based on TSMC’s 2nm process and a lower-tier option based on 3nm within the same chip family.

MediaTek has long counted Xiaomi, OPPO and Vivo among its major Chinese smartphone customers. OPPO and vivo are expected to be among the first manufacturers to launch phones using the new chips, following a similar rollout for the Dimensity 9500 series.

The company has traditionally been known for its mid-range smartphone processors, but introducing a 2nm flagship places it in more direct competition with Qualcomm in the high-end segment. The Dimensity 9600 Pro and 9600M are part of MediaTek’s broader push into higher-end devices, where the company says AI features can operate more effectively and support higher margins.

Running generative AI directly on smartphones has become a major area of competition among chipmakers. MediaTek is seeking to gain an advantage by becoming one of the first companies to adopt TSMC’s latest manufacturing technology. Reuters reported on the launch.

Higher component costs weigh on launch

The launch comes as the supply of key chip components remains difficult. MediaTek said it is working with customers to improve chip performance and offset higher component costs as a shortage of memory chips pushes prices higher, according to Nikkei Asia.

CEO JC Hsu said MediaTek is also working closely with handset makers to help reduce the impact of rising costs.

MediaTek is expanding beyond smartphones into AI infrastructure. That effort is supported by a $3.9 billion convertible bond sale that attracted investment from Nvidia and Alphabet.